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Experts say stamp duty hike unlikely to cool HK property market
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Residential property (top-R) on Victoria Peak overlooks the skyline of Hong Kong
HONG KONG : Hong Kong property consultants said the government's move to raise transaction taxes for luxury apartments will do little to stabilise residential prices.
However, they said plans to increase residential land supply will help.
The measures were announced in the government's Budget speech on Wednesday, and are aimed at averting a property bubble in the territory.
Hong Kong's Financial Secretary John Tsang has warned of an increased risk of a bubble forming in the local property market.
In his budget address Wednesday, Tsang said inflows of more than US$82 billion have flooded Hong Kong's asset markets since late 2008. And that has fuelled the rise in residential property prices, which soared by about 30 per cent in 2009.
To cool the market, the transaction tax for apartments worth more than US$2.6 million will be raised from the current 3.75 per cent of the transaction value to 4.25 per cent.
Consultants said this will not have much impact, as deals with that price tag only account for 2 per cent of total sales.
The measures were announced in the government's Budget speech on Wednesday, and are aimed at averting a property bubble in the territory.
Hong Kong's Financial Secretary John Tsang has warned of an increased risk of a bubble forming in the local property market.
In his budget address Wednesday, Tsang said inflows of more than US$82 billion have flooded Hong Kong's asset markets since late 2008. And that has fuelled the rise in residential property prices, which soared by about 30 per cent in 2009.
To cool the market, the transaction tax for apartments worth more than US$2.6 million will be raised from the current 3.75 per cent of the transaction value to 4.25 per cent.
Consultants said this will not have much impact, as deals with that price tag only account for 2 per cent of total sales.
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